Investment Rating - The report maintains a "Recommended" investment rating for China Pacific Insurance (02328.HK) with a target price of HKD 21.5 [1][8]. Core Views - The company achieved a net profit of CNY 24.5 billion in H1 2025, representing a year-on-year increase of 32.3%. The original premium income rose by 3.6% to CNY 323.3 billion, while the combined ratio (COR) improved by 1.4 percentage points to 94.8%. The total investment return rate (unannualized) increased by 0.2 percentage points to 2.6% [1][8]. - The report highlights strong underwriting profitability and favorable investment conditions contributing to performance growth. The company plans to distribute an interim dividend of CNY 0.24 per share (before tax) [1][8]. Financial Performance Summary - In H1 2025, original premium income increased by 3.6% to CNY 323.3 billion, with a combined ratio (COR) of 94.8%, down 1.4 percentage points year-on-year. The loss ratio rose by 1.7 percentage points to 71.8%, while the expense ratio decreased by 3.1 percentage points to 23% [8]. - The company’s investment assets grew by 5.2% to CNY 711.5 billion by the end of H1 2025, benefiting from structural market conditions in equities and opportunities in the bond market [8]. - The report projects significant growth in insurance service performance, with expected revenue of CNY 28.2 billion in 2025, reflecting a year-on-year growth rate of 96.1% [3][8]. Earnings Forecast - The report revises the earnings per share (EPS) forecast for 2025-2027 to CNY 2.04, CNY 2.16, and CNY 2.32 respectively, up from previous estimates of CNY 1.69, CNY 1.86, and CNY 2.08 [8]. - The price-to-book (PB) target for 2025 is adjusted to 1.5x, corresponding to the target price of HKD 21.5 [8].
中国财险（02328）：承保端盈利亮眼，投资向好双击业绩增长